Homeowner Loans Known As Secured Loans Still Remain – A Good Place to Start Are Tesco Loans

Homeowner Loans Known As Secured Loans Still Remain – A Good Place to Start Are Tesco Loans

To let the numbers speak first, they have a really low interest rate: 8.4% APR. This is their typical APR, it can even get lower. They offer loans between £7,500 and £14,999, and rates may vary just a little bit depending on the loan amount and on your personal circumstances and financial behaviour.

To get to other big advantages, the rate is fixed throughout the life of the Tesco loan, so the monthly repayments are fixed. Interest is calculated on a daily basis. Your first pay will have to be made only one month after the issue of the loan, but if you still feel the first payment period will be tough on you, you can opt for a payment break of 2 months. This will result in a 3 month payment break period for you. It is best, however, that you analyze in advance if you will need this opportunity or not, as there are no middle-term payment breaks.

With the payment break option, your loan period will be extended by 2 months, and the interest, which is chargeable throughout the loan, will be charged as well for the payment break. Payment breaks depend on certain criteria, so make sure a payment break is available for you if you are going to need one.

The Tesco loan term can be anywhere between 12 months and 120 months. The amounts are specified above, but should you need another amount, you can request it and it can be approved.

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Another good piece of news is that there are no setup fees with Tesco loans. The only fees you would have to pay are the early settlement fees, in case you might want to repay your loan in advance. However, the maximum charge for early settlement is two months’ interest. Also, you have to be careful with repayments, as there is a £30 fee each time a monthly installment is not paid in time and a £30 fee when a default notice must be issued.

To give an example of a loan amount and repayments, for a £7,500 loan with a 36 months term, you’d have a monthly repayment rate of £235.39 (8.4% APR), and you’ll pay a total amount of £8,474.04 till the end. For a £14,999 loan to be repaid in a 5 year term, the monthly repayment rate will be £304.10 (8.3% APR), and the total amount payable £18,246.00.

If you need a greater amount than that offered, you may want to consider taking one of the secured loans or homeowner loans, as there are usually higher borrowing limits and lower interest rates. If you have a bad credit history, there are lenders who offer bad credit loans, provided that you are over 18 and employed.